Cisco Buys Arroyo Systems, Cements Video-on-Demand

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Cisco purchased Arroyo Video Solutions for $92 million in an effort to expand its infrastructure offerings for the next stage of consumer-grade video-on-demand.

“The platforms out there today will not scale to the degree that we envision,” said Paul Bosco, vice president of video and cable initiatives at Cisco. “The nature of on-demand programming is changing. Cable operators used to be able to offer 100 choices that would get updated every couple of months, but consumers are soon going to expect millions of titles anytime they want them.”

Cisco also acquired Scientific-Atlanta and is working on both software and hardware for solving the bandwidth and compression speed issues facing current VoD systems.